Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268892 
Year of Publication: 
2023
Series/Report no.: 
CFS Working Paper Series No. 689
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Abstract: 
The right to ask questions and voice their opinions at annual general meetings (AGMs) represents one of the few avenues for shareholders to communicate directly and publicly with the firm's management. Examining AGM transcripts of U.S. companies between 2007 and 2021, we find that shareholders actively express their concerns about environmental, social and governance (ESG) issues in accordance with their specific relationship with the company. Further, they are also demonstrably more vocal about ESG issues at AGMs of firms with poor sustainability performance. What is more, we show that this soft engagement translates into a more negative tone which, in turn, results in lower approval rates for management proposals. Shareholders' soft engagement at AGMs is hence an effective way to "walk the talk".
Subjects: 
shareholder engagement
annual general meeting
ESG
textual analysis
JEL: 
G23
G34
G39
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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